Ex-US Ambassador to UN Haley Warns Social Security Could Go Bankrupt Within 5 Years as US Debt Tops $40 Trillion

Former US Ambassador to the United Nations Nikki Haley warned that Social Security faces an imminent funding crisis as US national debt surpasses $40 trillion, intensifying concerns about the government's fiscal outlook.

Haley Warns of Social Security Crisis

On Wednesday, Haley shared a CNBC report on X highlighting the latest milestone in US debt, writing: "Social Security will go bankrupt in 5 years, impacting 75 million Americans."

"You cannot ignore the growth of our debt," she added.

She further stated: "This has gone beyond crisis mode, and it needs to be the top priority for every elected official."

Haley's comments came after US national debt surpassed $40 trillion. According to Treasury Department data, US national debt reached approximately $40.05 trillion.

Social Security will go bankrupt in 5 years, impacting 75 million Americans. You cannot ignore the growth of our debt. This has gone beyond crisis mode, and it needs to be the top priority for every elected official.

— Nikki Haley August 19, 2026

US Debt Tops $40 Trillion

US government debt has reached $40.05 trillion, a significant increase from $19.4 trillion a decade ago, driven primarily by years of massive budget deficits and pandemic-era spending.

The government recorded a deficit of $432.3 billion in July, while the year-to-date cumulative deficit is approaching $1.8 trillion.

Rising debt and deficits have led to higher Treasury yields and borrowing costs.

Interest payments on the national debt have reached nearly $1.2 trillion this year, making it the largest federal budget expenditure after Social Security and Medicare.

Debt Concerns Trigger Inflation and Spending Alerts

The 30-year Treasury yield reached 5.323%, a 19-year high, as investors weighed inflation, federal deficits, and increased government borrowing.

Consumer prices rose 3.4% year-over-year in July.

Last week, Kentucky Republican Senator Rand Paul criticized the record July budget deficit of $432 billion, saying the government is spending "money we don't have."

He also warned against increased spending as the national debt approached $40 trillion.

Economist Peter Schiff warned that growing debt could push consumer prices higher, predicting the Federal Reserve may create more money to purchase Treasury bonds.

His warning came after US debt exceeded 100% of GDP, raising concerns about the potential inflationary impact of the growing fiscal burden.

Trump Defends US Debt Growth

Earlier, President Donald Trump defended the growing national debt, arguing that America's total asset value is worth hundreds of trillions of dollars.

He also supported government equity stakes in corporations and has previously pointed to tariff revenue and foreign investment as avenues to address debt that has exceeded 100% of GDP.